Chapter 18, Problem 15QS

To determine

Introduction: The companies that manufacture products have inventory in various stages of production. They are raw material inventory, work in progress inventory and finished goods inventory. Each of these inventories must be calculated to understand how much inventory from that account moves to the next account. Usually turnover ratios measure how efficiently a company uses its assets. Here we will see how efficiently the company has used raw materials in the production of the product.

To calculate: Raw material inventory turnover and the number of days sales in raw material inventory.